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J.P. Morgan, U.S. in Talks to Settle Probe

9/25/2013 10:57AM

J.P. Morgan Chase has offered to pay about $3 billion as it seeks to settle criminal and civil investigations by federal and state prosecutors into its mortgage-backed-securities activities. David Benoit reports on MoneyBeat. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... in mm mm mm ... morning welcome to MoneyBeat I'm Paul vignette ... JPMorgan Chase's offered to pay about three billion as it seeks to settle criminal and civil investigations but federal and state prosecutors into ... mortgage backed securities activities ... is today's page one story on the Wall Street Journal and David Benoit joins us now my market in my MoneyBeat compatriot Steve over three months later we get the name I guess you get in and I get the memo I'm here to talk about this one ... JPMorgan's offers three billion this is basing settle everything related to these mortgage ... deals write write exactly so so the bank ... facing kind of ... legal issues from from all over the place ... this is kind of been retained some some intrepid paid almost billion dollars last week with the London Whale indices ... paillettes but says it all the stuff copper cable or the three billion dollars Department justice ... take care of its parts ... it's amazing to hear three billion anything plots a really big number at any rate is a really good now yes ... but here too there are two elements right ... it's ... not just for what's right and it's not really that much money for JPMorgan unbelievably really isn't right right the bank makes six billion dollars a quarter or so so ... but that in context yet but ... but also I mean the Department justice this would be a huge fine for them at the top ... largest fine ever with the kids Glaxo in the Pharma company for ... a little over three billion dollars ... ALM so so this uncertainty up there with the biggest finds ever ... by the Department justice with my kid to be the biggest ever read aam ... they're they're sick of cutting billions more right ... this is J P Morgan's all for ... so now we hear that this is the nation's right to negotiations ... defence that they made this offer that were reporting on it that that that ... how ... does that suggest how far along the fault or how for but I think it does and ... probably further than the bin week I've had expected until this week ... on same it seems like the Department justice there is about to be ... a suit ... filed in action filed against the bank over ... these mortgage backed securities essentially deck and spurred the bank ... to get this done ... Jamie Dynan circling wants to stop talking about legal issues he wants talk about ... the fact that he is the biggest bank in the country ... aam and I think the stock of what BankAmerica it done ... over the last two years in which they have kept ... sort of throwing small bits at the Mardi Gras a problem and then they had this eight point five billion dollars settlement Bank ... that's a little bit of a different issue than this one JPMorgan Silpada faces different issues there ... up but certainly I think ... we should expect that this ... goes further whether or not there's an agreement with us on our honor we don't know how many billions of dollars apart they are in this discussion ... also we'll know is ... while we think the Justice two full department ultimately is going to want a guilty plea ... the fact that slanted JPMorgan right we are we are we are seen is certainly that ... that sentiment coming from the government we saw with the SCC in the London Whale rigid morning did admit wrongdoing ... the bank does not want to admit wrongdoing in terms of ... what ever happened in two thousandseven two thousandeight there are no one wants to their ongoing that opens up another huge can of worms for them ... how much how much of that ... all these things home for the fall of the cake and JPMorgan Fleming they are dealing with a lot of legal issues right well ... well in terms of taken off the ball there's still cranking out six million a quarter of ... this still the number one bank in terms of ... assets deposits there leading the tables in terms of investment banking entities ... there ... that sentiment ... I think stick to Jamie diamonds credit really ... the key housing allowed the actual bank to BLS distracted ... by what's going on them ... and and it's some ways is really kind of with the fire and then kind of do this and that's what ... but ... that Citi's acid others all the time that they have to deal with is there there on the front page of a loss to Journal quite alot recently not for what they wanna be